Celsius Creditors Urged to Exit Chapter 11 Bankruptcy Now: Details

Simon Dixon, a prominent figure in the crypto community known for keenly following Celsius’ bankruptcy proceedings, recently took to the X platform to issue stern warnings to Celsius Creditors concerning resolving the insolvency matter.

In the statement, Dixon expressed concerns about the ongoing Celsius Chapter 11 case and its connection with FTX, another embattled crypto platform with a bankruptcy case. Specifically, he emphasized the need for Celsius to exit its Chapter 11 as soon as possible and that creditors should be careful about what they ask regarding FTX.

👀 #Celsius Chapter 11 Creditors interested in the inter-relationship with the #FTX Chapter 11 Case.

Time To Exit Chapter 11.

Not legal or financial advice. https://t.co/szDfe0MmFH

— Simon Dixon (@SimonDixonTwitt) October 19, 2023

Notably, Dixon’s concern relates to the past financial transactions between Celsius and Alameda Research, a crypto trading firm affiliated with FTX. He highlighted that Celsius had provided loans to Alameda Research prior to its bankruptcy. However, Alameda Research repaid the loans using funds from FTX customers. Dixon cited that the amount involved in these loans in early 2022 was reportedly over $3 billion.

In the recent tweet, Dixon alluded to the potential risks associated with the dealings, cautioning Celsius Creditors against requesting further involvement with FTX. Dixon reiterated, saying, “Celsius Chapter 11 Creditors interested in the inter-relationship with the FTX Chapter 11 Case: Time To Exit Chapter 11.”

Meanwhile, Dixon disclaimed that his suggestions do not constitute legal or financial advice. For context, exiting Chapter 11 implies concluding bankruptcy proceedings under the United States Bankruptcy Code and emerging with a more manageable financial structure and a fresh start.

It is worth noting that FTX has recently unveiled a proposed settlement to address customer property disputes, potentially enabling customers to recover up to 90% of their lost assets by mid-2024. Coin Edition reported that the claim amounts to approximately $8.9 billion for FTX.com customers and $166 million for FTX.US customers.

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